Home / Knowledge / News / Textiles / Cavalier Corporation to shut down NEC Spinning Plant
Cavalier Corporation to shut down NEC Spinning Plant
28
Jun '12
Cavalier Corporation has advised staff at the yarn spinning plant of its subsidiary company Norman Ellison Carpets (NEC) that the plant is closing down on 26 July.  Staff affected by the closure were given the news at site meetings this morning. 

This decision was not taken lightly and came after a very thorough review process involving all of the Group's three woollen yarn spinning plants.

In April, Cavalier Corporation signalled that its earnings for the current financial year would be affected by one-off restructuring costs as it repositioned the broadloom carpet business to cope with the difficult operating environment. While the Company indicated at the time that the impact of the restructuring was difficult to project because of uncertainties as to timing, it still believes that if the estimated cost of all contemplated initiatives was taken into the current year, it would have the effect of reducing underlying earnings of between $3-5 million after tax to a loss of $1-3 million after tax.

The closure of the NEC spinning plant will result in a significant reduction in operating costs for the broadloom carpet business and is an integral part of the comprehensive business improvement program aimed at delivering $10-12 million profit after tax in the 2012-13 year.

Eight staff from the yarn spinning plant will transfer into NEC's tufting plant and it is hoped that at least a dozen of the NEC spinning staff will relocate to other plants within the Group, limiting redundancies to around 70 staff.  Some staff will be retained to de-commission and reinstall some of the existing NEC equipment at the Group's other plants.  All staff will be given every assistance to find other employment including job support outplacement and retraining allowances.

Staff have been advised of their redundancy entitlements and the plant will stop making yarn before the end of July.

The Board stressed that the NEC carpet business and the Norman Ellison Carpets brand itself would not be affected by the move.

This decision is about reducing over-capacity in the yarn spinning operations that support the Group's broadloom carpet manufacturing operations.  NEC will continue to make carpet at its Onehunga tufting plant, supported by very capable manufacturing and sales teams.

Cavalier Corporation

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search